Eagle Settles Investors’ Drug Revenue Lawsuit for $9.5 Million

Eagle Pharmaceuticals Inc. has agreed to pay investors $9.5 million to settle class claims that it “stuffed” its drug distribution channels to boost its reported revenue, according to a court filing.

The proposed deal is fair and should receive preliminary approval, the investors leading the suit told the US District Court for the District of New Jersey on Thursday. The settlement amount represents about 9% of the $104.6 million in estimated maximum damages, according to the filing.

“Eagle has recently disclosed that substantial doubt exists about the Company’s ability to continue as a going concern,” the investors said. That calls ...